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Marketing in the Mobile Phone Industry

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Marketing Assignment - Mobile Phone Industry Introduction We have chosen to investigate the following mobile phone companies:- * BT Cellnet * One2One * Orange We will be closely investigating another mobile phone network called Vodafone against the other three companies where we will be discussing Vodafone's competitive advantage against BTCellnet's long established cellular company of British Telecom and comparing the newly established company, One2One and how it threatens Vodafone. We will be creating and discussing SWOT analysis for these companies and explaining their current positioning. We will then be explaining how these four companies positioning will change within the next ten years from the results we have in our SWOT. Mobile Phone Description and History There has been massive change in the mobile phone industry since it was first launched in the 1980's. In recent years, four main players have dominated the industry, which are the companies we are discussing. Originally, two main players, Vodafone and Cellnet started the mobile telephone network. Vodafone History The Racal group founded Vodafone in 1982 and was the first mobile phone provider in the UK. The groups become public in 1988 when it floated on the New York Stock Exchange and in 1993, Vodafone and Racal demerged to become Vodafone Group PLC. The same year, the company was the first to launch an all-digital service called GSM (Global System for Mobile Communication) ...read more.


An example of Vodafone's brochure appears at the back. Target Customers Vodafone is trying to attract consumers in the AB social economic group with both their pre-pay and contractual services. Competitive Advantage Vodafone is the UK's longest established company. They have a good reputation in the cellular industry. This is a very good tool, as most people decide to choose a mobile on the service a member of their family or a friend is using, as Vodafone already has the most number of users, this market lead will grow and grow. They are investing heavily in new technology and offer the latest services for example, WAP, GPRS and along with BT Cellnet, offer both analogue and digital tariffs. Main Competitors BTCELLNET BT Cellnet, formally Cellnet UK, are a company owned by British Telecommunications PLC. Cellnet was formally joint venture with Securicor since 1983 and BT not own all shares in the company in 1996. They are the second network after Vodafone and therefore, are Vodafones main competitor. BT Cellnet has 8 million subscribers and retails in a variety of outlets including The Link chain of telecommunications stores where BT hold a 40% stake. Current Positioning Their slogan "Surf the net, surf the BT Cellnet" shows the company's interest in the mobile internet sector, and claim to have market leadership in this area. ...read more.


ONE2ONE Current Positioning One2One has been wholly owned since October 1999 by Deutsche Telekom who are a German telecommunications group, who bought the company for �8.4 billion. One2One was originally owned by a joint venture between Cable and Wireless and the American group, MediaOne. One2One were the first UK's first all-digital network and was launched as Mercury One2One and then the Mercury name was dropped in 1996 and re-branded as One2One. The company was the first to launch the all-digital pre-pay tariff in 1997 called 'Its Up2You' package. Current slogan: "Connecting People". Competitive Advantage The have heavily promoted their pre-pay mobile tariffs and are the only company to offer a standard tariff whereby there is non distinction between off-peak and peak calls. One2One mainly dominate the London area, but only cover 98% of the country. However, they were the first and only company to offer limitless local land-line calls every night after 6.00pm and all day at the weekend. Target Customers One2One are still targeting the less affluent population in the London area as their service does not cover the whole country. They offer some business tariffs but they are not as competitive as Vodafone's or BT Cellnet's. Along with Orange, they are targeting the leisure market and see this as the most profitable. Promotion One2One competes heavily along with the other mobile communications giants on prime time television. They retail within their own branches, via the internet and through retailer like The Car Phone Warehouse. ...read more.

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